Buy Indian Hotels: India Infoline

Amar Ambani, Head of Research at India Infoline is of the view that one can buy Indian Hotels.

Ambani told CNBC-TV18, "In hotels if anybody wants to buy anything then I think Indian Hotels is the only play that we would recommend. I think Hotel Leela is a sell as far as we are concerned, we think there is equity dilution in some of these markets like Bangalore and other areas will kind of witness a bit of a drop as far as Average Room Rates (ARRs) is concerned. So we are not overall overweight on hotels but if you have to stick to hotels then Indian Hotels would be the stock to be."
 
He further added, "We don’t have shipyards space under our coverage but definitely the business model, the business prospects for this sector, for this industry looks fabulous for the next three or four years. We have seen a lot of companies enter this space, even the likes of L&T getting in to this space. So clearly for the next three or fours years’ point of view, this space has fantastic potential in terms of business but since we don’t have it under our coverage I can’t recommend anything in particular but business model of ABG Shipyard does appear to be good."

Disclosure: Analyst doesn't hold Satyam, Cairn India, but have recommended them to clients.